Nykredit A S Invests $84.45 Million in Bank of America Corporation $BAC

Key Points

• Nykredit A/S acquired 1.48 million Bank of America shares worth approximately $84.45 million in the second quarter, while institutional investors collectively own 70.71% of BAC.
• Bank of America’s latest quarterly results exceeded expectations, with EPS of $1.21 and revenue of $31.56 billion, up 19.6% year over year. The company also raised its quarterly dividend from $0.28 to $0.32 per share.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $64.08, although management warned that third-quarter investment-banking revenue could decline 10%–20%.

Nykredit A S bought a new stake in shares of Bank of America Corporation (NYSE:BAC - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 1,482,139 shares of the financial services provider's stock, valued at approximately $84,452,000.

Several other institutional investors also recently added to or reduced their stakes in BAC. Turim 21 Investimentos Ltda. bought a new position in Bank of America in the 2nd quarter worth about $25,000. Abound Financial LLC purchased a new stake in shares of Bank of America in the fourth quarter valued at approximately $26,000. Principia Wealth Advisory LLC boosted its holdings in shares of Bank of America by 69.9% in the second quarter. Principia Wealth Advisory LLC now owns 530 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 218 shares during the period. Frazier Financial Advisors LLC bought a new position in shares of Bank of America during the 2nd quarter worth $34,000. Finally, Vermillion Wealth Management Inc. raised its holdings in shares of Bank of America by 199.1% in the first quarter. Vermillion Wealth Management Inc. now owns 658 shares of the financial services provider's stock valued at $32,000 after acquiring an additional 438 shares in the last quarter. Hedge funds and other institutional investors own 70.71% of the company's stock.

Bank of America Trading Up 0.4%

Shares of NYSE:BAC opened at $58.13 on Friday. Bank of America Corporation has a 52-week low of $46.12 and a 52-week high of $65.22. The stock has a market cap of $406.52 billion, a price-to-earnings ratio of 13.33, a PEG ratio of 0.93 and a beta of 1.15. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 1.23. The business has a 50-day moving average price of $62.04 and a 200-day moving average price of $55.79.

Bank of America (NYSE:BAC - Get Free Report) last issued its earnings results on Tuesday, July 14th. The financial services provider reported $1.21 EPS for the quarter, beating analysts' consensus estimates of $1.13 by $0.08. Bank of America had a return on equity of 12.20% and a net margin of 17.56%.The firm had revenue of $31.56 billion for the quarter, compared to analyst estimates of $30.78 billion. During the same quarter in the prior year, the firm earned $0.89 earnings per share. Bank of America's revenue for the quarter was up 19.6% on a year-over-year basis. Equities analysts predict that Bank of America Corporation will post 4.67 EPS for the current year.

Bank of America Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Friday, September 4th will be paid a $0.32 dividend. The ex-dividend date is Friday, September 4th. This is an increase from Bank of America's previous quarterly dividend of $0.28. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.2%. Bank of America's dividend payout ratio (DPR) is currently 29.36%.

Analyst Ratings Changes

Several brokerages have issued reports on BAC. Truist Financial increased their target price on shares of Bank of America from $64.00 to $65.00 and gave the stock a "buy" rating in a report on Wednesday, July 15th. Robert W. Baird upped their price target on shares of Bank of America from $58.00 to $62.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 15th. Wells Fargo & Company increased their price objective on shares of Bank of America from $67.00 to $69.00 and gave the company an "overweight" rating in a research note on Wednesday, July 15th. Jefferies Financial Group reissued a "buy" rating and set a $75.00 price objective on shares of Bank of America in a report on Tuesday, July 14th. Finally, Barclays boosted their price objective on shares of Bank of America from $71.00 to $72.00 and gave the stock an "overweight" rating in a research note on Wednesday, July 15th. Twenty-one research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $64.08.

Bank of America News Roundup

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Goldman Sachs reiterated a Buy rating on BAC, adding to recent bullish coverage and suggesting the selloff may have created an attractive entry point. Bank of America Receives a Buy from Goldman Sachs
• Positive Sentiment: Bank of America’s underlying banking trends remain constructive, with strong loan growth and net interest income. Its latest quarterly results also exceeded expectations, with earnings of $1.21 per share and revenue of $31.56 billion. Bank of America Stock Drop
• Positive Sentiment: BAC’s CashPro treasury platform processed more than €100 billion in payments for European companies during the first seven months of the year, highlighting growth in digital transaction-banking services. European Companies Shift Treasury to Mobile With Bank of America CashPro
• Neutral Sentiment: The Federal Reserve’s first rate increase in three years could support net interest income, but higher deposit costs and pressure to retain customers may limit the benefit. Fed Rate Hike Impact on Banks
• Negative Sentiment: The primary catalyst behind the decline was management’s warning that third-quarter investment-banking revenue could fall approximately 10%–20%. CEO Brian Moynihan said revenue in a key business area is slowing despite a healthy deal pipeline, raising concerns about near-term fee income. Bank of America Investment Banking Fees

Bank of America Profile

Bank of America Corporation NYSE: BAC is a diversified financial services company serving individual consumers, businesses, institutional investors and governments. Its operations include consumer banking, credit and debit cards, mortgages, small-business banking, commercial banking, investment banking, securities trading and investment management.

The company provides consumer and wealth-management services through Bank of America and Merrill, including deposit accounts, lending, brokerage, retirement planning, financial advice and private banking.

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